NNPC returns N6 billion as FG suffers $45.90 million revenue loss

The Nigeria National Petroleum Corporation (NNPC) has reportedly refunded the sum of #6.330 billion to the federal government, even as the federal government suffered a revenue loss of $45.90 million.

This was disclosed in a statement signed by Kene Offie, Head of Press and Public Relations, Office of the Accountant General of the Federation.

The statement also gave a detailed breakdown on how the revenue for the month of April was allocated between the different tiers of government.

The statement reads: “The Federal Government, State Governments and Local Government Councils received a net statutory allocation of N207.878 Billion as Federal Allocation for the month of April, 2016 which was shared among the three tiers of government as follows: Federal Government 52.68%, States 26.72%,Local government 20.60% and 13% derivation of Mineral Revenue for oil producing states.

“A Communique released by the Federation Accounts Allocation Committee (FAAC) and signed by the Accountant-General of the Federation,Alhaji Ahmed Idris indicated that the GROSS REVENUE of N213.817 billion received for the month was lower than the N232.619 billion received in the previous month by #18.802 billion.

“Oil Production increased slightly between December, 2015 and January, 2016 despite explosions at Escravos Terminal, Force Majeure declared at Brass Terminal as well as Shut -in and Shut down of Pipelines at other Terminals for repairs and maintenance. However, there was revenue loss of $45.90 million as a result of drop in average price of Crude Oil from $39.04 in December,2015 to $29.02 in January, 2016. Also, a marginal drop in income was recorded from Oil and Gas Royalty and Import Duty.

“The distributable Statutory Revenue for the month is N213.817 billion. The sum of #6.330 billion was refunded by the NNPC to FGN. Also, there is exchange gain of N2.424billion which was also proposed for distribution. The total revenue distributable for the current month (including VAT) is N281.500 billion.

“The details of the Statutory Revenue distributable for the month of March, 2016 is as follow : Federal Government received N101.215 billion (52.68%), States received N51.338 billion ( 26.72%), and the Local Government Councils received N39.579 billion (20.60%), while the Oil Producing States received N15.745 billion as (13% of Mineral Revenue – Oil and Gas).

“Furthermore, for the month of April, 2016, the gross revenue available for the Value Added Tax (VAT) was N65.259 billion as against N64.234 billion distributed in the proceeding month, resulting in a decrease of N1.025 billion.

“The breakdown of the Value Added Tax (VAT) distribution for the month is as follows : N65.259 billion out of which the Federal Government got N9.397 billion (15%), States got N31.325 billion (50%) and the Local Government Councils received N21.927 billion (35%).”